FDC COMMODITY UPDATE – JANUARY 19, 2024

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Dear Subscriber,

Brent edges higher on IEA forecast

Brent futures gained marginally by 0.04% to $77.91pb today as the International Energy Agency reviewed their 2024 global oil demand growth upward by 180,000bpd to 1.24mbpd. This was 81.45% lower than OPEC’s projection of 2.25m bpd. The rise in oil prices is also supported by tight supplies from the U.S, as oil production declined by 700,000bpd in North Dakota due to unfavourable weather conditions. The rising tension in the Middle East also bolstered oil prices and we expect the bullish trend to continue in the near term. Nigeria stands to benefit from the rising trend, especially with the increase in its production to 1.42mbpd.

Naira comes under pressure as MPC meeting yet to hold for 6 months

The naira has continued its free fall, depreciating 0.37% to N1,355/$ today, despite the CBN’s effort to clear the forex backlog. The CBN recently announced a $2 billion FX clearing exercise with affected companies in the banking and aviation sectors benefiting from the disbursement. Moreso, the FGN seeks a budget support facility of $1.5bn from the World Bank. With inflation at a 27-year high of 28.92%, there are concerns that the MPC has not met in the last 6 months.

These and other burning economic issues were discussed on Channels TV Business Incorporated Programme by FDC M.D, Mr. Bismarck Rewane

Click the link to watch the video.